Toronto-headquartered Timbercreek has closed its second Ireland-focused debt fund at €123.5M, which will give it as much as €300M to lend to Irish property.

The Timbercreek Ireland Fund II will use leverage to fund the senior portion of its positions, giving it the potential to build a €300M loan book by the end of 2025, the company said.

The closed-end fund has a seven-year life with the ability to reinvest capital through the duration of the fund, and it will provide loans for commercial real estate in Ireland with a focus on multifamily residential, industrial, and retail properties.

The fund's loans can be structured with interest-only payments, flexible amortisation and early repayment options. The fund's life is seven years, with the option to reinvest capital during that time.

Timbercreek established its Dublin office in 2017 under executive director Paul Roddy and launched its first Ireland Fund the same year, targeting loan sizes of €5M to €50M with terms of one to five years and LTVs of up to 80%.

Deals completed by the fund include the €9.5M refinancing of a senior living care home in Kildare, a €33M acquisition and development of a Dublin industrial portfolio, the €32M funded acquisition and refit of a portfolio of residential, retail and industrial units in Dublin, and the €22M financing of a Dublin residential portfolio.

The news comes as Colliers reported that Irish commercial property investment reached €594M across 24 transactions in the third quarter of 2024, up 16% on the €510M invested during Q2, bringing year-to-date investment to €1.26B. The average deal size has risen, standing at €25M in Q3 compared to €18M in Q2 and just €8M in Q1.

Retail was the top-performing sector at 33% of total investment, mostly attributable to the €130M sale of The Square Shopping Centre in Tallaght to Eagle Street Partners/Arrow Global and the €48M sale of Blackpool Shopping Centre and Retail Park in Cork to Lugus Capital & Patron Capital.

Offices accounted for 23% of turnover across 11 deals, all for secondary office assets, with the largest office deal being a private Irish investor acquiring One Warrington in Dublin 2 from Irish Life for circa €40.5M. Industrial and logistics attracted 23% of total spend, with the largest transaction the sale and leaseback by Primeline Group of two newly built logistics units at Ashbourne Business Park to Deka Immobilien for approximately €70M.